@starf:
The memory is atleast enough for achieving the 1280x1024 native resolution at 8-bit, but unfortunately the GD5426 or GD5428 chip on the Picasso2 has a maximum pixelclock of 85MHz at 8-bit and that is too slow to manage that resolution without resorting to interlace. At 16-bit it is even worse - then the maximum pixelclock is only 45MHz.
/Patrik